Jacada Ltd. (Nasdaq: JCDA), a leading provider of customer
experience management and process optimization solutions, today
reported financial results for the third quarter ended September
30, 2011.
Third Quarter Highlights
- Executed a material multi-year service
and solution support agreement with Kabel Deutschland, Germany’s
largest cable operator
- Executed an agreement for the
development of key integration components that allow Blue Cross
Blue Shield of Massachusetts to leverage their existing investments
in future strategic initiatives for an integrated provider
management system
- Introduced the latest version of Jacada
Interface Server (JIS) with updated browser support and extensions
to the Jacada knowledge base
- Third quarter revenues were $3.0
million with a net loss of $1.7 million
“We were pleased to extend our relationship with Kabel
Deutschland as we continue to provide ongoing professional services
for the development of future releases of the company’s unified
desktop,” commented Gideon Hollander, co-chief executive officer of
Jacada. “This quarter, we also began the development of key
integration components for Blue Cross Blue Shield of Massachusetts’
integrated provider management system. This system will allow their
agents to more efficiently service healthcare providers by
providing access to more organized information.”
“While these agreements extended our services engagements, there
were limited software deliveries during the third quarter, reducing
our software revenue to $42,000 from $813,000 in the previous
quarter,” commented Caroline Cronin, Chief Financial Officer.
“While total expenses remained consistent between the second and
third quarters of 2011, this reduction in software revenue, which
typically carries a higher margin, impacted our net income,
increasing our net loss to $1.7 million in the third quarter from
$1.1 million in the second quarter.”
Financial Results
For the third quarter of 2011, total revenues were $3.0 million
compared to $5.0 million in the third quarter of 2010. Software
revenues for the 2011 third quarter were $42,000 compared to
$455,000 during the 2010 third quarter. Services revenues were $2.2
million and $3.9 million in the third quarter of 2011 and 2010,
respectively. Maintenance revenues improved to $735,000 in the
third quarter of 2011 from $651,000 in the 2010 third quarter.
Gross margins were 30% and 39% of total revenues during the 2011
and 2010 third quarters, respectively. Margins were impacted both
by the reduction in software revenue, which typically carries a
higher margin, and by a reduction in services margins as fixed
expenses were absorbed by lower services revenue. Third quarter
2011 operating expenses of $2.6 million, reflecting savings from
cost containment measures implemented during the third quarter of
2010, were significantly less than third quarter 2010 operating
expenses of $3.5 million.
The 2011 third quarter net loss was $1.7 million or ($0.41) per
share compared to a net loss of $1.5 million or ($0.36) per share
in the third quarter of 2010.
Conference Call Details
Management will hold a conference call to discuss the third
quarter 2011 financial results at 10:30am ET on November 21, 2011.
To participate in the teleconference, please call toll-free
888-680-0860 or 617-213-4852 for international callers, and provide
pass code 73346396 approximately 10 minutes prior to the start
time. Interested parties may pre-register for the teleconference
via this URL:
https://www.theconferencingservice.com/prereg/key.process?key=PALYQ4CPM.
A (live audio) webcast will also be available over the Internet at
www.jacada.com (under "About Us" then "Investors") or
www.earnings.com.
A replay of the teleconference will be available for three days
beginning at 1:30 p.m. ET on November 21, 2011. To access the
replay, dial toll-free 888-286-8010, or for international callers
617-801-6888, and provide pass code 27258901.
About Jacada
Jacada provides solutions that optimize and improve the
effectiveness of customer interactions. Jacada unified desktop and
process optimization solutions help companies reduce the cost of
their operations, drive customer satisfaction and provide a
complete return on investment in as little as 12 months after
deployment.
Founded in 1990, Jacada operates globally with offices in
Atlanta, USA; Herzliya, Israel; London, England; Munich, Germany;
and Stockholm, Sweden. More information is available at
www.jacada.com, www.jacada.com/blog, www.jacada.com/facebook and
www.jacada.com/twitter.
This news release may contain forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995. The words "may," "could," "would," "will," "believe,"
"anticipate," "estimate," "expect," "intend," "plan," and similar
expressions or variations thereof are intended to identify
forward-looking statements. Investors are cautioned that any such
forward-looking statements are not guarantees of the future
performance and involve risks and uncertainties, many of which are
beyond the Company's ability to control. Actual results may differ
materially from those projected in the forward-looking statements
as a result of various factors including the performance and
continued acceptance of our products, general economic conditions
and other Risk Factors specifically identified in our reports filed
with the Securities and Exchange Commission. The Company undertakes
no obligation to update or revise any forward-looking statement for
events or circumstances after the date on which such statement is
made. Jacada is a trademark of Jacada Inc. All other brands or
product names are trademarks of their respective owners.
JACADA LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS
OF OPERATIONS (U.S. dollars in thousands, except per share
data) Three months ended
September 30,
Nine months ended
September 30,
2011 2010
2011 2010
Unaudited Revenues: Software licenses $ 42 $ 455 $ 1,102 $
1,585 Services 2,203 3,878 6,485 11,010 Maintenance 735
651 2,070 1,856
Total revenues 2,980 4,984
9,657 14,451 Cost of revenues:
Software licenses 9 65 84 197 Services 1,868 2,793 5,906 8,134
Maintenance 212 199 575
582 Total cost of revenues 2,089
3,057 6,565 8,913
Gross profit 891 1,927 3,092 5,538 Operating expenses:
Research and development 787 926 2,123 2,746 Sales and marketing
792 1,236 2,460 4,141 General and administrative 1,058 1,126 3,125
3,579 Restructuring - 196 -
196 Total operating expenses
2,637 3,484 7,708 10,662
Operating loss (1,746 ) (1,557 ) (4,616 ) (5,124 )
Financial income, net 63 58 7
107 Loss before taxes (1,683 ) (1,499 )
(4,609 ) (5,017 ) Taxes
(16
)
(10 ) (19 ) (11 ) Net loss
(1,699 ) (1,509 ) (4,628 ) (5,028 )
Basic and diluted net earnings loss per share $ (0.41
) $ (0.36 ) $ (1.11 ) $ (1.21 ) Weighted average number of
shares used in computing basic and diluted net loss per share
4,159,134 4,159,134 4,159,134
4,158,023
JACADA LTD. AND ITS
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (U.S.
dollars in thousands) September 30,
December 31, 2011 2010
Unaudited Audited ASSETS CURRENT
ASSETS: Cash and cash equivalents $ 4,320 $ 5,945 Marketable
securities 556 1,240 Trade receivables 2,469 4,081 Restricted cash
489 493 Other current assets 953 1,079
Total current assets 8,787 12,838
LONG-TERM INVESTMENTS: Marketable securities 9,356
10,809 Severance pay fund 195 186
Tota
l long-term investments 9,551
10,995 PROPERTY AND EQUIPMENT, NET 672
856 Total assets $ 19,010 $
24,689 LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES: Trade payables $ 1,540 $ 1,566 Deferred
revenues 1,008 1,076 Accrued expenses and other liabilities
1,198 1,478 Total current liabilities
3,746 4,120 LONG-TERM
LIABILITIES: Accrued severance pay 383 366 Other long-term
liabilities 2 44 Total long-term
liabilities 385 410
SHAREHOLDERS' EQUITY: Share capital 60 60 Additional paid-in
capital 75,973 75,829 Treasury shares at cost (17,863 ) (17,863 )
Accumulated other comprehensive profit (loss) (309 ) 487
Accumulated deficit (42,982 ) (38,354 ) Total
shareholders' equity 14,879 20,159
Total liabilities and shareholders' equity $ 19,010 $
24,689
JACADA LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in
thousands Three months ended
September 30,
Nine months ended
September 30,
2011 2010
2011 2010
Unaudited
Cash flows from
operating activities:
Net loss $ (1,699 ) $ (1,509 ) $ (4,628 ) $ (5,028 )
Adjustments required to reconcile net loss to net cash used in
operating activities: Depreciation and amortization 92 127 303 374
Stock-based compensation related to options granted to employees,
non employees and directors 43 100 144 389 Decrease in restricted
cash 8 - 4 - Accrued interest and amortization of premium on
marketable securities - (15 ) 6 112 Other than temporary loss on
marketable securities - - 205 - Gain from sales of marketable
securities - - - (9 ) Decrease (increase) in accrued severance pay,
net (8 ) (9 ) 8 (17 ) Decrease in trade receivables, net 1,280 46
1,632 84 Decrease (increase) in other current assets (60 ) (290 )
101 474 Increase (decrease) in trade payables 23 (7 ) (16 ) (326 )
Increase (decrease) in deferred revenues (91 ) (115 ) (53 ) 483
Increase (decrease) in accrued expenses and other liabilities (432
) 291 (408 ) 110 Decrease in other long-term liabilities (2 ) (20 )
(42 ) (59 ) Other 15 15
56 Net cash used in operating activities (846
) (1,386 ) (2,729 ) (3,357 )
Cash flows from
investing activities:
Investment in available-for-sale marketable securities - -
1,210 (10,992 ) Proceeds from sale and redemption of
available-for-sale marketable securities - - - 9,727 Decrease in
restricted cash held by trustee - - - 141 Proceeds from sale of
property and equipment - - - 7 Purchase of property and equipment
(33 ) (19 ) (119 ) (357 ) Net
cash (used in) provided by investing activities (33 ) (19 ) 1,091
(1,474 )
Cash flows from
financing activities:
Proceeds from exercise of stock options - -
- 75 Net cash provided by
financing activities - - -
75 Effect of exchange rate changes on
cash (41 ) 229 13 (112 ) Decrease in cash and cash
equivalents (920 ) (1,176 ) (1,625 ) (4,868 ) Cash and cash
equivalents at the beginning of the period 5,240
8,932 5,945 12,624
Cash and cash equivalents at the end of the period $ 4,320 $
7,756 $ 4,320 $ 7,756
JACADA
LTD. AND ITS SUBSIDIARIES U.S. dollars in
thousands Supplemental Information: Cash and
Investments September 30, December 31,
2011 2010 Unaudited
Audited Cash and cash equivalents cash: 4,320
5,945
Marketable securities 9,912 12,049 Restricted cash 489
493 Total cash and investments including restricted
cash $ 14,721 $ 18,487
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